This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Ceragon Networks Reports Third Quarter 2012 Financial Results

Stocks in this article: CRNT

PARAMUS, New Jersey, October 29, 2012 /PRNewswire/ --

Ceragon Networks Ltd. (NASDAQ: CRNT), the premier wireless backhaul specialist today reported results for the third quarter which ended September 30, 2012.

Revenues for the third quarter of 2012 reached $118.0 million, up 2% from $116.1 million for the third quarter of 2011, and down 1% from $119.1 million in the second quarter of 2012.

Net loss in accordance with US Generally Accepted Accounting Principles (GAAP) for the third quarter of 2012 was $(2.7) million or $(0.07) per basic share and diluted share, compared to net loss of $(6.7) million in the third quarter of 2011, or $(0.19) per basic share and diluted share.

On a non-GAAP basis, net income for the third quarter, excluding (a) $1.4 million of equity-based compensation expenses, (b) $0.9 million amortization of intangible assets, (c) $2.9 million inventory step up related to the Nera acquisition and (d) $0.8 million of changes in pre-acquisition indirect tax positions, was $3.3 million, or $0.09 per basic share and diluted share. Non-GAAP net income for the third quarter of 2011 was $0.6 million, or $0.02 per basic and diluted share (please refer to the accompanying financial tables for reconciliation of GAAP financial information to non-GAAP).

Gross margin on a GAAP basis in the third quarter of 2012 was 31.0% of revenues. Gross margin on a non-GAAP basis was 34.5% of revenues.

Operating loss on a GAAP basis in the third quarter of 2012 was $(1.3) million. On a non-GAAP basis operating profit was $4.7 million.

Cash and cash investments at the end of the quarter were $48.6 million.

  "We are pleased to achieve a gross margin near our target and reach an operating profit margin of 4%," said Ira Palti, President and CEO of Ceragon. "We are making excellent progress toward our profitability goal.

"We remain optimistic about the business because we are well-positioned in an attractive sector that is likely to enjoy numerous growth drivers for years to come, but we are not immune to macroeconomic factors that are causing the second half of the year to be slower than originally expected.  After a dramatic pickup in bookings to record levels in Q2, we experienced a reversal in the order pattern in Q3. Although a portion of this change is accounted for by some large orders being delayed until Q4, due to the macroeconomic environment, we expect Q4 revenues to decline sequentially. With operators showing extreme caution regarding spending, sales cycles are lengthening and we are assuming no improvement from Q4 levels as we move into 2013.

1 of 7

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs